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NMHC, NAHB Study Reveals Regulation Accounts for 30%+ of MF Development Cost
Regulation imposed by all levels of government accounts for an average of 32.1% of multifamily development costs, according to new research by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC). In fact, researchers found in a quarter of cases, that number can reach as high as 42.6%.
NAHB Chairman Randy Noel says, “The home building industry is one of the most highly regulated industries, and the multifamily sector is particularly subject to these obligations.”
Apartment and condo development can be subject to a significant array of regulatory costs, including a broad range of fees, standards and other requirements imposed at different stages of the development and construction process. However, until now there had been no previous research done to analyze the extent of this regulation.
NMHC President Doug Bibby says, “The current regulatory framework has limited the amount of housing that can be built, and increased the cost of what is produced. At a time when states and localities are struggling to address housing affordability challenges, public and private stakeholders should work together to streamline regulations and take the steps necessary to expand housing in communities across the country.”
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